market stuff Flashcards
(21 cards)
market research definition
is the collection and analysis of data and information to inform a buiness about its market
why is the data used for
identify and customer needs and wants
quantify likely demand
gain insight into customer
primary market research
involves collecting data first hand, data that did not exist before
secondary market research
desk research that has already been undertaken and already exists
example of primary market research
postal
telephone
online chat
face to face
focus group
second market research
government statics
market research organisations
academic organizations
newspaper and magazines
qualitative data
non statical information into human behaviour
quantitative data
statical data based on numbers
limitations of market research
-Past data and trends may not be a fair indication of the
future
-Accuracy of research findings
-Dependent upon ability to correctly analyse findings
-Financial and opportunity costs
why we sample
Businesses cannot ask for the opinions of all potential
customers and therefore try to choose a representative sample
the value of sample depend on
sample technique used
size of sample
how it was carried out
the size of the sample will depend on
budge available
importance of accuracy
degree of confidence of results
random sampling
a sample is selected for study from a population where each individual is chosen
entirely by chance and has an equal chance of being selected.
quota sampling
The population is first segmented into subgroups before a judgement is made in
selecting respondents that are representative of that subgroup
stratified
The population is first segmented into subgroups before respondents are randomly
selected from within that subgroup
4 things market segmentation is in
Demographic
Geographic
Income
Behavioural
demographic characteristics
Age
Gender
Level of education
Race
Religion
Family size
Stage in life e.g. empty nesters
geographic stuff
different ares different characteristics
south east england warmer then north
income segmentation
based on levels on income on a level from high to low
behavioural segmentations
Reasons for making purchases e.g. needs, emotional,
rewards
Frequency of purchase e.g. heavy user or light user
Time of purchase e.g. seasonal, weekly, late at night
benefits of market segmentation
Advertising can be targeted at specific market segments so that
advertising spend is more effective
The most profitable and least profitable customers can be
identified
Least profitable markets can be avoided
It becomes easier to identify new products
It helps the firm improve existing products and customer
service
